California Resources (CRC) appears likely to file for bankruptcy within the next six weeks. It has a credit facility requirement to have at least $150 million in liquidity at the end of the month, and it very likely can't make its June 15th interest payment for its second-lien notes without pushing its liquidity well below $150 million. California Resources also has a borrowing base re-determination that was scheduled for May 15 that could also squeeze its liquidity.
I do not see value in California's second-lien bonds at this point. The first-liens can make